SCHG vs VTV: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between SCHG and VTV

SCHG (Schwab U.S. Large-Cap Growth ETF) is a u.s. large-cap growth fund managed by Schwab. SCHG focuses on large-cap U.S. growth stocks, companies that are expected to increase their earnings faster than the overall market. It holds about 250 stocks and is heavily tilted toward technology and consumer discretionary sectors. For beginners who believe in the long-term potential of innovative, fast-growing companies, SCHG provides that exposure at an extremely low cost.

VTV (Vanguard Value ETF) is a us large-cap value fund managed by Vanguard. VTV tracks the CRSP US Large Cap Value Index, offering broad exposure to large U.S. companies that are considered undervalued relative to their fundamentals. It is a core holding for investors who believe value stocks will outperform over the long run. The fund spans established companies across financials, healthcare, and industrials at a rock-bottom cost.

The most notable differences are in fees (0.04% vs 0.04%), number of holdings (250 vs 340), and 5-year returns (19.50% vs 10.00%).

Holdings Overlap Analysis

SCHG and VTV share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

Choose SCHG if: You want growth-oriented investors with a long time horizon and higher risk tolerance, schwab customers who want low-cost access to large-cap growth stocks, younger investors willing to ride out volatility for potentially higher returns. It's managed by Schwab with an expense ratio of 0.04%.

Choose VTV if: You want long-term investors who favor a value investing philosophy, retirees seeking stable large-cap companies with reliable dividends, investors looking to balance a growth-heavy portfolio. It's managed by Vanguard with an expense ratio of 0.04%.

Can You Own Both SCHG and VTV?

Absolutely! With only 5% overlap, SCHG and VTV complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions